By: John Carvalho | President, Divestopedia Inc.
By: John Carvalho | President, Divestopedia Inc.
A transitional service agreement (TSA) is a type of agreement that is made between the buyer and seller of a company. In this arrangement, the seller agrees to provide certain services to the buyer at a predetermined price. These services can include accounting, IT and human resources and their...
A cash sweep is the use of a company's excess cash to pay outstanding debts ahead of the scheduled payment date instead of giving it to their investors or shareholders. This process helps a company to minimize risk and liability as well as pay its debt at a faster rate than what is expected or...
A debt capital market (DCM), also known as a fixed income market, is a market for trading debt securities such as bonds and loans. Like equity markets, debt capital markets are used by businesses and governments to raise long-term funds that could go towards growth or maintenance.The main...
Determining the value of your business is the starting point to building value. Here’s how to set up a simple valuation template in excel.
By: John Carvalho | President, Divestopedia Inc.
The most common EBITDA adjustments you need to know when it comes time to sell your business.
By: John Carvalho | President, Divestopedia Inc.
Inform yourself on what you can reasonably expect a payback period to be for your small- or medium-sized business.
Concentration in the acquisition world is a bad word. Businesses with high supplier concentration attract fewer buyers and this lowers the price. What’s too high? Having a supplier with 40% of your business is too high. Diversify if at all possible. When buyers look at a company for sale,...
There are generally two reasons companies spend money on capital expenditures (capex): to grow the business, and to maintain the business. Once a company determines it needs to make a capex investment it must decide how to pay for the capex, either using company cash or debt. Let’s explore each...
A private equity group has a lot of flexibility typically in how they collect fees or harvest value from a company in which they are invested. The form and structure of what those economics looks like varies, but the most typical structure is some type of current pay from the economics surrounding...
It’s the dream of just about every private equity fund manager to source a proprietary deal. Why? Because they are often less trafficked by buyers and therefore...
The succession or exit by a business owner is usually the single largest financial transaction in their lifetime with a lot at risk as typically a majority of an...
By: Scott Yoder
Regardless of the current media concentration on the pros and cons of private equity firms and investments, those who work in the business or those considering...
By: Jack Kearney | Managing Director
Business buyers do not often reveal their hands about why they feel a business is an attractive acquisition prospect for fear of driving up the price. They do, however,...
By: Dave Kauppi
One of the most important elements of a great investment is getting the right people involved. The right people bring innovative ideas, create opportunities and help the...
By: Jeffrey Kadlic
That dollar figure, whether written on a napkin over coffee or floated in a conversation, is not a binding offer. Any potential acquirer will need to conduct a due...
By: Paris Aden
In my previous article, Value is in the Eye of the Beholder, I presented the idea that the definition of value can vary depending on the stakeholder. I stated that for...
By: Erick Hamdan
The exit plan is progressing. We have identified the goals under Step 1, determined the financial needs upon exit under Step 2, assessed the current value of the...
If you started your business from scratch, the chances are that you’ve invested a lot of your time and financial resources into growth. You have been through thick...
By: Lyle Solomon | Principal Attorney
I sat down with Tom Hendrickson, the founder and president of Mitre Media, an online financial media company focused on aggregating a sophisticated audience of...
By: Cory Janssen
How does working capital impact the value of my business? Firstly, an overriding principle of valuation, particularly in valuing operational going concerns businesses,...
Working on the buy-side means that I not only get to negotiate a deal, but that I also have to put together a realistic financing structure that will get that deal done...
By: John Carvalho | President, Divestopedia Inc.
When one thinks of private equity buyouts, the first topic that comes to mind is rarely the consideration for the management team. However, the human element should not...
By: Chris Stavrou
How much will you have to explain to the marketplace after the acquisition? Some strategic acquisitions are stealth-like — the customers won’t even know...
By: Robert Sher
Jason Gibson specializes in timber frame construction, a traditional style of carpentry that dates back hundreds of years. Every project he touches—whether...
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By: Paul Wormley | General Partner, Hadley Capital
By: Miracle Semien | COO, Veaux Professional Services, LLC
By: Hope Malveaux | CEO, Veaux Professional Services, LLC
By: Hope Malveaux | CEO, Veaux Professional Services, LLC
By: Paul Wormley | General Partner, Hadley Capital
As a designated Family Enterprise Advisor, Cindy helps individuals, family enterprises, business owners and family offices navigate the complexities and opportunities that come with wealth. Cindy draws on over 25 years of legal, fiduciary, trust and governance experience in professional services firms, financial institutions and family offices in her practice. She uses her skills to provide an objective perspective and facilitate understanding of how complex family, business and ownership structures can impact family dynamics and family wealth continuity.
Award-winning writer, Mike McCarron, was one of the founders of MSM Transportation before it was purchased in 2012. Based in Toronto, Mike is currently the president of Left Lane Associates, a company that helps C-Suites “monetize” their transportation company. He can be contacted at [email protected] or followed on Twitter @AceMcC.
K. Perry Campbell, Ph.D., CM&AA is a Principal at ACT Capital Advisors, LLC and serves on the board of the Alliance of Merger & Acquisition Advisors (AM&AA). He has managed all aspects of buy-side and sell-side transactions in many industries completing transactions that have totaled over $800 million in market value. Beginning with his first post-doctoral position at Texas Instruments, Dr. Campbell has had a successful business career spanning over 30 years of business management, business ownership, business acquisitions, and business sales.